Warrior Trading's Ross Cameron Says 2023 Was a 'Quiet' Year for Day Traders

Warrior Trading founder Ross Cameron says 2023 was a quiet year for trading, yet he nonetheless managed to have a successful and educational 12 months trading in 2023. Here's his year in review.

"This year for many of us wasn't great," said the expert day trader in a recent YouTube video. "It was a somewhat difficult year in the sense that we were still mostly dealing with tighter economic conditions."

The Warrior Trading founder noted that the overall market, while up in 2023, was still well off the all-time highs until just the last couple of weeks of the year as the S&P rose.

"So, most of the year the market was still kind of in this recovery mode. But I have pretty high hopes for next year because, based on the Federal Reserve reducing interest rates, certainly pausing and then reducing. I think that's going to help the market lift back up even more," said Cameron.

Wins Were Smaller and the Market Quieter in 2023

According to Warrior Trading's Cameron, for most of 2023, the wins were smaller for many traders and their losses started to outsize, forcing them to tolerate more risk.

"That collective shift is [usually] the beginning of a bull market," he said in a recent interview, adding that in the early part of the year, he saw hit-and-miss opportunities in both large and small caps. "[It wasn't] the same as in 2020 [or] 2021, where [these opportunities] were every single day. We were officially in a bull market, but we're not at all-time highs in the S&P."

For much of 2023, the iShares Russell 2000 ETF—one of the main exchange-traded funds that tracks the Russell 2000 index—was still lagging, which for Cameron meant the markets still had a way to go.

By the fall, when kids were back in school, the Warrior Trading founder saw an uptick in volume as more people were coming back in to participate in a higher market. That led to not only some good gains but also to more opportunities to find gems to trade, Cameron observed.

Overall, in 2023, Cameron says he made over $300,000 in net profit from day-trading by analyzing his own historical data and implementing lessons learned from previous years. During 2023, he did what he does every year. Cameron focused on managing risk, improving his trading accuracy and profit/loss ratio, and capitalizing on opportunities in volatile markets.

In his recent YouTube video, he shared strategies for identifying potential trades based on volume, share size, and relative price movements. Cameron also reflected on mistakes made throughout the year, such as overstaying welcomes during breakouts and impulsive trading.

As of Dec. 29, the last trading day of 2023, Cameron's trading account had hit $10,725,000 in profit since he started trading over a decade ago with a $583 starting balance. In 2023, he finished with $306,548.41 in profit. But it wasn't all sunshine and roses.

December 13: A Red Day for the Warrior Trading Founder

Last year, Ross Cameron's worst trading loss occurred on a one-minute pharmaceutical trade on Dec. 13. That loss was $9,000.

"I remember just feeling like I just wished I could have pressed the undo button. But that's not how it goes," he said.

Cameron said there were several key lessons he learned from that trade. The first was to check the volume before jumping in. The stock he lost $9,000 on had low volume when he entered, and that low volume helped lead to slippage on the entry price. He also said he learned not to trade impulsively. Cameron admitted he jumped into the trade too quickly without properly checking the volume and setup. Third, Cameron said the bad trade helped him remember that he always needs to better manage risk. The stock he targeted that day swung aggressively from $5 to $7 and back down to $4.36, leading to a significant loss. Cameron reflected that he should have managed his risk better.

The Warrior Trading creator also said his worst trade of the year reminded him to wait for proper setups. A trading setup refers to a certain arrangement of price bars that point to possible favorable outcomes, signaling a good time to enter or exit. The stock had popped up $2 a share after Food and Drug Administration clearance, but Cameron said on reflection that he did not wait for a proper setup and consolidation before jumping in.

Lessons Learned in 2023 That Will Help in 2024

Overall, the main lessons Ross Cameron said he learned from his worst trade of the year were to trade less impulsively, check volume and liquidity first, manage risk properly on volatile stocks, and wait for proper setups before entering trades.

In any trade, he noted, you have to be quick in the first leg, but you also don't want to overstay your welcome. If the stock feels like it's going to backslide or it's getting too choppy, make sure you don't over-trade the back side, he said.

"I want to be aggressive on the front side of the move. But don't be greedy by going back too many times. Be grateful and live to trade another day and try again tomorrow," Cameron pointed out, reminding traders to remember the 80/20 rule. "Twenty percent of the trading days produces 80% of the profits."

Cameron said of the lessons he learned in 2023, he'll aim to apply them to become a more disciplined and successful trader in 2024.

"In 2024 I want to improve my accuracy back toward 70%. I think that this year I did just a little too much dipping my toe in on not-great setups and then losing, and it brought my accuracy down," said Cameron.

"I have to focus on higher quality stocks. I have to really ask myself: Does this stock have the potential to be a home run? And if it doesn't, sometimes it's like, why even bother? If the best I'm going to make is a couple hundred bucks, why bother? Because when I'm aiming to make a couple hundred, sometimes it's like stepping over dollars to pick up pennies."

While last year was a quiet year, Cameron still managed to make respectable returns. And even more important to him, he learned a lot of great lessons that will help him make 2024 a success.

Disclaimer

The content of this article is for informational and educational purposes only and should not be construed as financial advice or as a guarantee of success in day-trading or any other form of investment. Day-trading involves substantial risks, including the potential for significant losses. Results can vary greatly, and past performance is not indicative of future outcomes. Readers are encouraged to conduct their own research and to consult with a qualified financial professional before making any investment decisions.

Disclosure

This is sponsored content. The sponsorship may include, but is not limited to, payment for article placement to the publication, compensation to the writer for their time, or other arrangements.